The report analyzes the trend of Product Development Services (PDS) firms receiving more engagement from non-traditional customer bases, which has driven them to increase their skills, AD&D talent, and services. In the report, Forrester highlights five main themes driving this shift in both customer base and PDS firm services:

The democratization of technology decision-making

An increased demand for new skills and capabilities

A rising interest in digital transformation

Requests from industries struggling to leverage data

An emphasis on Internet of Things practices and/or skills

While customers face these trends, the vendors of product development services also face significant changes in their approach, including bringing more creativity to their client interactions, welcoming smaller deals as “wedges” to larger engagements, and empowering their engineers to drive more innovation.

Nathaniel Fleming wrote the report, along with Christopher Andrews, Joseph Miller, and Ian McPherson.

Forrester’s description of the report reads in part:

In a business climate where software defines the brand, companies and their application development and deliver (AD&D) professionals need applications that differentiate their business. As companies scramble to create dynamic applications, they’re realizing that they need third-party help – from product ideation, to implementation and integration. The most advanced product development services (PDSes) firms are building up their competencies in digital business strategy, customer experience (CX), innovation services, and data analytics to meet their customers’ broadening expectations.

Forrester clients can download the full report for free on the Forrester website. For non-Forrester clients, the report is available for purchase.